Measuring Online Impact and ROI in 5 Steps

Closing the Gap on ROI Measurement What to Measure and How to Justify Your Existence ,[object Object],[object Object]

What We’ll Cover Today ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

A long time ago… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategic Tactical Search Display

Today… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Marketing Conversation #1 How is our online advertising working? Great Boss! Wonderful! How do the results look? CTRs are up and CPC is falling. Length and depth of engagement are increasing and conversion rates are improving! We’re also nominated for a Webby! What the *#^@*! are you talking about?

Marketing Conversation #2 How is our online advertising working? Great Boss! Wonderful! How do the results look? We’re generating $7 in sales for every $1 spent while increasing our brand awareness by 75%. Can you handle a bigger budget?

Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Solution(?) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

5 Steps to Success ,[object Object],[object Object],[object Object],[object Object],[object Object]

Step 1: Define Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Step 2: Define Actions and Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Step 3: Measure Results ,[object Object],[object Object],[object Object]

Step 3: Direct KPIs – Traditional Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Step 3: Direct KPIs – Online Surveys ,[object Object],[object Object]

Step 3: Direct KPIs – Online Surveys ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Step 3: Survey Results 156% lift ,[object Object],90% lift ,[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Step 3: Attributable Results

Step 3: Roles of Online Media Goal!!!!!!

Step 3: Sample Engagement Path ,[object Object],[object Object],Display Vendor #1 Impression Day: 0 60 30 Display Vendor #2 Impression E-Mail 3 rd party Impression Display Vendor #3 Impression Search “ Widget” Paid Click Search “ Brand X Houston, TX” Natural Click Direct Nav Visit / Action

Step 3: Attribution  Influenced Visits Attribution #1: demonstrate advertising’s impact on site traffic – regardless of source. Impact of Advertising

Step 3: Attributing Actions and CPA Attribution #2: Recast Actions by Source* *Actions = Visits, Conversions, etc. Attributes partial credit for “assists” or ads that preceded visits or actions Attribution #3: Recast Cost Per Action* *Recalculates CPA based on Recast actions by channel

Step 4: Analyze Results Information (results) Data (stats) Insights (actionable) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],Step 5: Translate Results into Value *Direct ROI captures only part of the value. Brand value of 2mm impressions plus 9,700 visits that did not convert is of equal if not greater value. Investment $10,000 Impressions ($5 cpm) 2,000,000 Visits (direct and indirect) 10,000 Direct Leads 300 Lead Close rate (est.) 10% Expected Transactions 30 Expected Revenue ($1,000 each) $30,000 Direct Return on Spend* $3.00

Step 5: ROI Methodology #2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Action Value Site Visits Indicates awareness Goal Page Views Indicates consideration Registrations Indicates preference

Step 5: ROI Methodology Define Metrics Assign Close Rates Project Value for each action Normalize (average) Values Divide by Cost or investment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Step 5: Example of Offline Funnel / ROI

Step 5: Indexing Performance Understand the Context of your environment – use Google Trends as a proxy for Demand. Show RELATIVE performance by indexing your results vs. Google Trends

Step 5: Benchmarking ,[object Object],[object Object],[object Object]

In Closing… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],View this presentation at http://bit.ly/ROImeasurement

Measuring Online Impact and ROI in 5 Steps

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